Warner Bros. Discovery shareholders voted overwhelmingly on Thursday to approve the merger with Paramount Skydance, clearing a major hurdle for the $500 million-plus deal. The vote saw over 1.7 billion shares cast in favor, against roughly 16.3 million opposed.
Shareholders, however, rejected the executive compensation package tied to the merger, which would have netted CEO David Zaslav at least $500 million. More than 1.4 billion votes opposed the proposal, versus 307.7 million in support. The compensation vote was advisory and non-binding, meaning executives could still receive the payments if the deal closes.
Zaslav has led the combined company since 2022, having overseen the acquisition of Warner Media from AT&T four years ago. The firm's stock had struggled until Paramount expressed interest in buying the company last year.
The merger now moves closer to finalization, though the rejected pay package highlights ongoing shareholder unease with executive compensation. The deal's completion would create a major force in streaming and entertainment, combining Warner Bros.' film and TV library with Paramount's studio and sports assets.
Analysts will watch for regulatory approvals and any further shareholder pushback on governance issues before the transaction closes.